Economists believe in unchanged interest rates for 2020

Interest rateNorges Bank. CEO Øystein Olsen. Photo Norges Bank

In 2019, the base rate was raised three times. That will not happen in 2020, according to economists Dagens Næringsliv has talked to.

The 15 economists agree that the base interest rate will be the same at the end of 2020 as it is now. This is good news for people who have loans, while those with savings in the banks may lose out, DN writes.

There are two reasons for the belief in an unchanged interest rate: lower growth in Norway and political and economic uncertainty internationally.

– While 2019 was the year when our trading partners slowed down, while the Norwegian economy kept up, 2020 could be the year when growth here at home slows down at the same time as it picks up out there, says senior economist Marius Gonsholt Hov at Handelsbanken.

He points out that the political risk internationally has been reduced by a partial US-China trade agreement and a convincing victory to Boris Johnson.

In December, Norges Bank’s Executive Board decided to keep the base interest rate unchanged at 1.5 per cent.

© NTB Scanpix / #Norway Today


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